$24.2M IN REDEV SPENDING QUESTIONED

State may veto 8 items listed by CivicSD, set up to oversee old projects

Civic San Diego once again faces state vetoes over post-redevelopment spending plans — this time $24.2 million out of $143.1 million listed.

CivicSD President Jeff Graham told his board last week that staff will discuss the items with state representatives in meet-and-confer sessions in the next couple of weeks. “We’re hoping we’ll be able to use excess bond proceeds to implement (disallowed plans),” Graham said. “We’ll pursue other funding sources, grants and other means and see if the city has money from the capital improvement program projects that are not funded to help leverage our bond proceeds to make most of these happen.”

Graham did not itemize the amounts associated with seven items turned down by the state. But he confirmed their details after the meeting Wednesday:

• Grantville settlement agreement, dealing with funds shifted to the county, $207,762

• Five Points pedestrian improvements in Middletown, $99,300

• Bond debt service reserve, $21,961,750

An eighth item, worth $2 million, represents a litigation settlement reserve for a property acquired at 1343-45 Market St. in East Village. Graham said the state does not object to the obligation to pay the property owner, just that the figure should not appear on this list of projects scheduled for action in the second half of the year.

The dispute between CivicSD plans and the state stems from the end to redevelopment agencies last year and the wind-down process related to completing ongoing projects.

Every six months, CivicSD, set up to oversee the old redevelopment project areas and find new ways to help improve neighborhoods throughout the city, has to get state approval for spending on leftover projects.

The agency presents the list to an independent oversight board, which usually approves it, and sends it to the state for review.

Numerous bills are in the works in Sacramento to try and revive redevelopment in some form.